Petronas Dagangan Bhd.MYX: PETDAG

Quarterly Financial Report (Q2 FY2024)

Aug 21, 2024 at 10:48 AM UTC · Issued by Petronas Dagangan Bhd.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

The Board of Directors of PETRONAS Dagangan Berhad ("PDB" or the "Company") is pleased to announce the following Unaudited Condensed Consolidated Financial Statements for PDB Group for the second quarter ended 30 June 2024 which should be read in conjunction with the accompanying explanatory notes on pages 7 to 20.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		Individual quarter ended		Cumulative quarter ended
	Note			30 June			30 June
In RM'000		2024	2023	2024	2023

Revenue	B1	9,837,939	8,912,517	19,231,065	17,557,975

Operating profit		401,616	378,474	744,771	785,506
Finance costs		(2,183)	(2,626)	(4,516)	(5,301)
Share of (loss)/profit after tax of equity
accounted associates and joint ventures		(3,327)		(659)		(17,378)	3,849
Profit before taxation	B1	396,106	375,189	722,877	784,054
Taxation	B4	(112,784)	(98,493)	(206,654)	(200,989)

PROFIT FOR THE PERIOD		283,322	276,696	516,223	583,065
Profit attributable to:

Shareholders of the Company		276,391	275,710	502,432	577,548
Non-controlling interests		6,931	986	13,791	5,517

PROFIT FOR THE PERIOD		283,322		276,696		516,223	583,065
Earnings per ordinary share - basic (sen)	B11	27.8	27.8	50.6	58.1

The Unaudited Condensed Consolidated Statement of Profit or Loss should be read in conjunction with the accompanying

explanatory notes attached to these Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

	Individual quarter ended		Cumulative quarter ended
Note			30 June			30 June
In RM'000	2024	2023	2024	2023

PROFIT FOR THE PERIOD	283,322	276,696	516,223	583,065
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss
Exchange differences arising from
translation of financial statements of
foreign operations	-	(61)		-	260
Total other comprehensive (loss)/income
for the period	-	(61)		-	260
TOTAL COMPREHENSIVE INCOME FOR THE

PERIOD	283,322	276,635	516,223	583,325
Profit attributable to:
Shareholders of the Company	276,391	275,649	502,432	577,808
Non-controlling interests	6,931	986	13,791	5,517
TOTAL COMPREHENSIVE INCOME FOR THE

PERIOD	283,322		276,635		516,223	583,325

The Unaudited Condensed Consolidated Statement of Other Comprehensive Income should be read in conjunction with

the accompanying explanatory notes attached to these Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at		As at
		30 June		31 December
In RM'000	Note	2024	2023
ASSETS

Property, plant and equipment		4,026,797	4,116,879
Intangible asset		-	97
Investments in associates		2,167	2,075
Investments in joint ventures		43,981	61,452

TOTAL NON-CURRENT ASSETS		4,072,945	4,180,503

Trade and other inventories		144,308	148,745
Trade and other receivables		4,309,913	5,634,024
Cash and cash equivalents		3,118,838	1,507,053

		7,573,059	7,289,822
Assets classified as held for sale	A12	16,383	16,634

TOTAL CURRENT ASSETS		7,589,442	7,306,456

TOTAL ASSETS	B1	11,662,387	11,486,959
EQUITY
Share capital		993,454	993,454
Reserves		4,830,322	4,774,945

Total Equity Attributable to Shareholders of the Company		5,823,776	5,768,399
Non-controlling interests		82,114	68,323

TOTAL EQUITY	B1	5,905,890	5,836,722
LIABILITIES

Borrowings	B6	94,626	99,823
Deferred tax liabilities		72,024	69,870
Other long-term liabilities and provisions		40,268	40,268

TOTAL NON-CURRENT LIABILITIES		206,918	209,961

Trade and other payables		5,369,156	5,356,895
Borrowings	B6	33,185	52,396
Taxation		147,238	30,985

TOTAL CURRENT LIABILITIES		5,549,579	5,440,276

TOTAL LIABILITIES	B1	5,756,497	5,650,237

TOTAL EQUITY AND LIABILITIES		11,662,387	11,486,959
Net assets per share attributable to ordinary equity holders of the
Parent (RM)		5.86	5.81

The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the

accompanying explanatory notes attached to the Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In RM'000

At 1 January 2024 Profit for the period

Total comprehensive income for the period

Dividends paid

At 30 June 2024

Attributable to shareholders of the Company

Non-distributable		Distributable
	Foreign
	Currency				Non-
Share	Translation	Capital	Retained		controlling	Total
Capital	Reserve	Reserves	Profits	Total	Interests	Equity
993,454	-	(305)	4,775,250	5,768,399	68,323	5,836,722
-	-	-	502,432	502,432	13,791	516,223
-	-	-	502,432	502,432	13,791	516,223
-	-	-	(447,055)	(447,055)	-	(447,055)
993,454	-	(305)	4,830,627	5,823,776	82,114	5,905,890

At 1 January 2023	993,454	(6,491)	(305)	4,756,087	5,742,745	44,621	5,787,366
Exchange difference
arising from translation
of financial statements
of foreign operation	-	260	-	-	260	-	260
Total other comprehensive
income for the period	-	260	-	-	260	-	260
Profit for the period	-	-	-	577,548	577,548	5,517	583,065
Total comprehensive
income for the period	-	260	-	577,548	577,808	5,517	583,325
Dividends paid	-	-	-	(546,400)	(546,400)	-	(546,400)

At 30 June 2023	993,454	(6,231)	(305)	4,787,235	5,774,153	50,138	5,824,291

The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the

accompanying explanatory notes attached to these Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Cumulative quarter ended 30 June

In RM'000	Note	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation		722,877	784,054
Adjustments for:
Depreciation of property, plant and equipment		230,082	223,345
Amortisation of intangible asset		97	193
Net impairment losses/(write back) on trade and other receivables
-Trade and other receivables		(4,040)	(3,721)
-Property, plant and equipment		7,323		-
Bad debts written off		316	301
Share of loss/(profit) after tax of equity accounted associates and joint
ventures		17,378	(3,849)
Unrealised foreign exchange loss		1,928	2,524
Net gain on disposal of property, plant and equipment		(508)		-
Property, plant and equipment written off		7,890		-
Property, plant and equipment expensed off		813	396
Interest income		(65,404)	(65,647)
Interest expense		4,516	5,301

Operating profit before changes in working capital		923,268	942,898
Trade and other inventories		4,436	(11,897)
Trade and other receivables		1,328,402	423,285
Trade and other payables		11,691	(219,941)

Cash generated from operations		2,267,797	1,134,345
Taxation paid		(88,246)	(350,645)

Net cash generated from operating activities	B1	2,179,551	783,700
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income		65,404	65,647
Purchase of property, plant and equipment		(155,649)	(157,161)
Proceeds from disposal of property, plant and equipment		921		-

Net cash used in investing activities	B1	(89,324)		(91,514)
		continue to next page

Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying

explanatory notes attached to the Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

Cumulative quarter ended 30 June

In RM'000	Note	2024	2023
CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid		(447,055)	(546,400)
Payment of lease liabilities	B6	(26,872)	(30,606)
Profit margin paid on Sukuk facilities	B6	(18)		-
Interest paid on lease liabilities	B6	(4,498)	(5,301)

Net cash used in financing activities	B1		(478,443)		(582,307)
Net increase in cash and cash equivalents		1,611,784	109,879
(Increase)/decrease in cash and cash equivalents restricted		(27,912)	8,173
Net foreign exchange differences			-	47
Cash and cash equivalents at beginning of the period		1,478,837	2,851,047

Cash and cash equivalents at end of the period		3,062,709	2,969,146
Cash and cash equivalents
Cash and bank balances		3,118,838	2,999,087
Less: Cash and cash equivalents restricted		(56,129)	(29,941)

			3,062,709		2,969,146
		continued from previous page

The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying

explanatory notes attached to the Condensed Consolidated Financial Statements.

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

PART A - EXPLANATORY NOTES PURSUANT TO MFRS 134

A1 BASIS OF PREPARATION

The condensed financial statements have been prepared using historical cost basis except for certain financial assets and financial liabilities that are stated at fair value.

The condensed financial statements are unaudited and have been prepared in accordance with IAS 34 Interim Financial Reporting, MFRS 134 Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. They should be read in conjunction with the Audited Financial Statements and the accompanying notes for the year ended 31 December 2023. The explanatory notes attached to these condensed consolidated financial statements provide an explanation of events and transactions that are significant to the understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2023.

Within the context of these financial statements, the Group comprises the Company and its subsidiaries, and the Group's interest in its associates and its joint ventures as at and for the quarter ended 30 June 2024.

A2 MATERIAL ACCOUNTING POLICIES

The financial information presented herein has been prepared in accordance with the accounting policies to be used in preparing the annual consolidated financial statements for 31 December 2024 under the MFRS framework. These policies do not differ significantly from those used in the audited consolidated financial statements for year ended 31 December 2023 except as disclosed below.

During the financial year, the Group has adopted the following MFRS and Amendments to MFRSs ("pronouncements") that have been issued by the Malaysian Accounting Standard's Board ("MASB").

Effective for annual periods beginning on or after 1 January 2024

Amendments to MFRS 16 Leases (Lease Liability in a Sale and Leaseback)

Amendments to MFRS 101 Presentation of Financial Statements (Classification of Liabilities as Current or

Non-current)

Amendments to MFRS 101 Presentation of Financial Statements (Non-current Liabilities with Covenants)

Amendments to MFRS 107 Statement of Cash Flows (Supplier Finance Arrangements)

Amendments to MFRS 7 Financial Instruments: Disclosures (Supplier Finance Arrangements)

The initial application of the above pronouncements are not expected to have material impact to the consolidated financial statements of the Group.

178,822

447,055

546,400

268,233

149,018

258,298

139,084

In RM'000

2022

Quarter 4: interim dividend of 26 sen per ordinary share

Quarter 4: special dividend of 14 sen per ordinary share 2023

Quarter 1: interim dividend of 15 sen per ordinary share

Quarter 4: interim dividend of 27 sen per ordinary share 2024

Quarter 1: interim dividend of 18 sen per ordinary share

As at

30 June

2024

As at

30 June

2023

DEBT AND EQUITY SECURITIES

There were no material issuance, cancellations, repurchases, resale and repayments of debt and equity securities for the period under review, except as disclosed in B6.

DIVIDENDS PAID

During the period under review, the following dividend payments were made:

485,000

118,987

195,147

314,134

Approved and contracted for Approved but not contracted for

87,102

397,898

In RM'000

As at 31 December 2023

Capital expenditures which have not been provided for at the end of each reporting period are as follows:

As at

30 June

2024

PART A - EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)

AUDIT REPORT OF PRECEDING ANNUAL FINANCIAL STATEMENTS

The audited financial statements of the Group for the year ended 31 December 2023 were not subject to any audit qualification.

SEASONAL OR CYCLICAL FACTORS

The Group's operations in relation to sales volume are not significantly affected by seasonal or cyclical fluctuations of the business/industry.

EXCEPTIONAL ITEMS

There were no exceptional items during the period under review.

MATERIAL CHANGES IN ACCOUNTING ESTIMATES

There were no material changes in estimates of the amounts reported in the most recent annual financial statements of the Group for the year ended 31 December 2023 that may have a material effect in the results of the period under review.

CAPITAL COMMITMENTS

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

PETRONAS DAGANGAN BERHAD 198201008499 (88222-D)

QUARTERLY REPORT

FOR SECOND QUARTER ENDED 30 JUNE 2024

PART A - EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)

A10 OPERATING SEGMENTS

The Group's reportable operating segments comprise Retail, Commercial and Convenience Businesses. Each reportable segment offers different services and requires different marketing strategies.

For each of the reportable segment, the Group's chief operating decision maker which is the Board of Directors of the Company, reviews internal management reports at least on a quarterly basis.

•

Retail

- consists of sales and purchase of petroleum products to the retail sector.

Commercial - consists of sales and purchase of petroleum products and provision of services to the commercial sector.
Convenience - comprises mainly non-fuel business activities.

Revenues derived from petroleum products are predominantly sold to the retail and commercial sectors in Malaysia which have been disclosed in the Operating Segment. In this respect, no further disaggregation of revenue is presented.

Results for the cumulative quarter ended 30 June
In RM'000			2024
Business Segments		Retail	Commercial	Convenience	Group
Revenue		10,235,003	8,852,476	143,586	19,231,065
Depreciation and amortisation	183,651	30,896	15,632	230,179
Other income		89,090	40,625	2,769	132,484
Operating profit for reportable segments	442,928	285,349	16,494	744,771
Finance cost	(990)	(3,395)	(131)	(4,516)
Share of loss after tax of equity accounted
associates and joint ventures				(17,378)
Profit before taxation				722,877
In RM'000			2023
Business Segments		Retail	Commercial	Convenience	Group
Revenue		8,974,789	8,459,634	123,552	17,557,975
Depreciation and amortisation	180,015	27,823	15,700	223,538
Other income		85,913	32,550	1,960	120,423
Operating profit for reportable segments	453,738	299,910	31,858	785,506
Finance cost	(1,215)	(3,896)	(190)	(5,301)
Share of profit after tax of equity accounted
associates and joint ventures				3,849
Profit before taxation				784,054